Labor & Employment Law Daily Wrap Up, REPORTS—AFL-CIO reports that top CEOs earned 312 times average pay in 2025, (Aug 17, 2026)
Organizations Mentioned:AFL-CIO | Tesla | Wind Colebrook, LLC
By WK Editorial Staff
“The median U.S. worker would need 43,154 years to earn what Trump made in his first year back in office.”
The AFL-CIO announced last week that a new executive compensation report shows that S&P 500 chief executives earned an average of $22.8 million in 2025, or 312 times the pay of the median U.S. worker, marking a sharp increase from the 285-to-one ratio reported for 2024.
21 percent CEO pay increase. According to the labor federation's 2026 Executive Paywatch report, average CEO compensation rose 21 percent year-over-year, reaching the highest level recorded during the international union's three decades of tracking executive pay. The report analyzes compensation data reported to the Securities and Exchange Commission and points out that executive pay growth has far outpaced wage gains for average workers.
Declining share for workers. The AFL-CIO highlighted several findings, including that workers' share of national income fell to its lowest level since World War II and that many employees at major employers, including Amazon, Dollar Tree, FedEx, McDonald's and Walmart, rely on public assistance programs. The report also cited financial pressures facing U.S. households, including difficulty paying bills, covering medical expenses, and managing emergency costs.
Musk and Trump. The study separately noted that including Tesla CEO Elon Musk's reported $158.3 billion compensation package would raise average S&P 500 CEO pay to $340.1 million. The report also examined President Trump's reported 2025 income and compared it with earnings of the median U.S. worker. The latter, according to the report, would need 43,154 years to earn what Trump made in his first year back in office.
AFL-CIO Secretary-Treasurer Fred Redmond said the findings demonstrate a growing imbalance between executive compensation and workers' economic conditions, arguing that stronger union representation is needed to ensure workers receive a greater share of corporate profits.
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